© Reuters. Cactus (WHD) gains on a $150 million buyback, raised Q2 guidance
Cactus (NYSE:) said its board authorized a $150 million share repurchase program.
“This decision reflects our expectation of stronger cash generation from both the Cactus and FlexSteel businesses through industry cycles, which we believe is not considered in our current equity value,” CEO Scott Bender said in a press release.
Moreover, Bender said that the company now expects both the Cactus and FlexSteel businesses to perform better than previously expected in the second quarter.
This is “despite our expectation that the U.S. onshore rig count will end the quarter at approximately 650 rigs,” Bender added.
“We intend to continue to invest in attractive organic growth opportunities, pay down debt, evaluate attractive M&A opportunities and maintain a sustainable dividend while executing repurchases under this authorization,” the CEO concluded.
Stifel analysts reaffirmed a Buy rating and a $61 per share price target and expect the stock “to react well to the strong 2Q23 guidance revision and buyback program.”
Cactus stock is up 4.4% on Thursday.
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